Pennsylvania’s 2026 governor’s race will center on how candidates resolve the state’s $20.3 billion education budget, which accounts for nearly 40% of the $50.8 billion spending plan. The Commonwealth Court’s 2023 decision declaring Pennsylvania’s school funding system unconstitutionally unequal has sharpened the contrast between Democrat Josh Shapiro and Republican Stacy Garrity, whose proposals for K-12 and higher education differ fundamentally.
Shapiro has combined record investments in public schools with support for private school vouchers, a position that diverges from many of his party’s members. His 2024-25 budget created the State Board of Higher Education to guide a decade-long strategy linking universities to workforce demands, while also expanding grant and scholarship programs. The board’s priorities include credential expansion, cost management, and industry alignment, though Pennsylvania’s per-student funding for public colleges remains among the lowest in the nation, ranking 46th.
Garrity, the state treasurer, presents an alternative approach centered on tuition freezes, economic growth, and expanded school options. Her campaign argues Shapiro’s spending has not resolved core systemic failures, pointing to third-grade retention policies—which require students failing reading tests to repeat the grade—as a necessary reform. Garrity also advocates for vouchers, criticizing Shapiro for vetoing a $100 million GOP-backed program in 2023 despite earlier expressions of support. The veto followed a Democratic-led House rejection of the proposal, leaving Shapiro’s office framing it as an unresolved matter without clarifying whether his position has evolved.
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Garrity ties her voucher stance to parental choice, citing her backing for the Lifeline Scholarships proposal, which would have provided first-come, first-served aid to students in low-performing districts. The plan failed in the legislature. Meanwhile, Pennsylvania’s existing tax credit programs, the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC), already divert hundreds of millions in public funds to private schools.
Combined program caps rose from $465 million in 2022 to $680 million under Shapiro’s administration, which added over $200 million in new funding. Garrity proposes increasing the EITC cap by another $60 million and swiftly adopting a new federal tax credit initiative that Pennsylvania has not yet joined. Shapiro’s team has not ruled out participation but has cited the need for further review, with a 2024 deadline looming.
Higher Ed Funding Clash Over Jobs and Transparency
On higher education, Shapiro’s record includes a 6% funding increase for the Pennsylvania State System of Higher Education (PASSHE) and $120 million in expanded grant programs. Garrity, however, prioritizes job creation, arguing Shapiro’s administration has not fully capitalized on Pennsylvania’s natural gas sector to drive workforce development. Her campaign claims her policies could generate 200,000 jobs, a figure Shapiro’s team dismisses as unrealistic. The two also differ on transparency: Shapiro signed 2023 legislation requiring state-related universities to disclose financial data, while Garrity supports extending full Right-to-Know Law compliance to these institutions, aligning their reporting with PASSHE schools. Shapiro proposes income-based tuition limits, whereas Garrity advocates for a mandatory five-year tuition freeze for undergraduates.
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Cyber Charters and School Funding Battles
Cyber charter schools remain a contentious issue. Shapiro’s recent budget adjustments, allowing districts to offset more expenses before calculating cyber charter reimbursements, saved public schools an estimated $178 million. Garrity’s campaign, however, calls for a full review of all charter finances, arguing surplus management must be addressed to stabilize funding across school types.
The Commonwealth Court’s 2023 ruling on school funding has left Pennsylvania’s K-12 system with a $4.5 billion adequacy gap, only partially addressed by lawmakers. Shapiro’s 2024-25 budget allocated $1.9 billion toward closing the shortfall, but $2.6 billion remains unmet. Since taking office, the governor’s education spending has grown by over $3 billion, including expanded free breakfast programs and stipends for student teachers. Garrity’s team suggests revisiting the adequacy formula itself, though they have not detailed specific modifications beyond ensuring court compliance. Pennsylvania currently lacks a statewide third-grade retention policy, but Garrity’s plan would require all districts to implement one for students failing reading benchmarks. Research on such policies shows limited long-term benefits beyond initial reading gains.
Tax Credits Fuel Private School Funding Wars
Pennsylvania’s tax credit programs for private schools, EITC and OSTC, currently redirect hundreds of millions in public funds, with combined caps rising from $465 million in 2022 to $680 million. Shapiro’s administration added over $200 million in funding, but the 2026-27 budget did not increase caps further. Garrity seeks to raise the EITC cap by $60 million and join the federal tax credit program, which offers donors tax breaks for private school scholarships. Pennsylvania has not yet opted in, and Shapiro’s office has not committed to doing so, citing pending details. The federal program’s participation deadline is the end of 2024.
